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tv   Real Money With Ali Velshi  Al Jazeera  October 3, 2013 7:00pm-7:31pm EDT

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this is al jazeera america live from new york city, i'm tony harris with a look at today's top stories. take a look at this video with a chase here the capitol in washington, d.c. that ended in a woman dead. the driver did a sharpu turn and sped away. it all started when she tried to ram her car through a security check point. officers shot and killed the women when she hit a barrier. a 1-year-old child was in the car and is safe.
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speaker john boehner is to blame for the shutdown. that is the message from the president. and bobby jindal has declared a catastrophe. karen is expected to hit the tip of louisiana tomorrow. those are the headlines this hour. more headlines next hour. "real money with ali velshi" starts right now. ♪ after thursday's violence in washington, a look at security in the nation. who is still on the job, and who is not getting paid to protect american citizens and cities around the government -- around the country, during the government shutdown.
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plus how fracing is boosting exports, creating jobs, and stirring up controversy in america. and more manufacturers say they are planning to bring jobs back from china to the united states. i'm ali velshi, and this is "real money." ♪ welcome to "real money." you are the most important part of the show every day, so tell us what you think about tweeting us, or leave us a comment on facebook. as shots rang out on capitol hill, our attention turned to security. is everyone who should be working to keep us safe still on the job? the answer is sort of. police and federal agents converged to stop the shooter. but not all of those first responders are still getting a paycheck. some will have to wait in this
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latest round of congressional dysfunction ends and the government reopens. and the military is still hard at work and getting paid, but civilians working at the pentagon, the national security agency, the cia, national guard and others are furloughed, basically forced leave, and it's unclear if they will get paid for it. one question arising from thursday's events is whether this budget standoff poses a real risk to american safety. does shutting off the flow of federal money mean we're putting ours in danger. joining me is robert from a u.s. security firm. he is a 30-year veteran of law enforcement. robert good to have you here. thank you for being with us. >> sure. >> there is a lot of sentiment going around that if you can afford to have so many nonessential people stay home,
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why do we need them in the first place. when it comes to law enforcement tell me your thoughts on this. >> that is an intuitive thought. but from working in the intelligence community, i can tell you that i -- i was key and essential in the last budget impasse in the mid-'90s, but those personnel right behind the first line of defense, intelligence analysts and other professions are tied to how i and others in the first line of defense do their jobs. maybe a few days or even a week, not much notice, but beyond that it can be quite concerning. >> and some of these agencies we have talked about, very, very large chunks of the working population has been told to stay home. in the nsa, fbi and cia. the civilians in many cases are not coming to work. >> exactly. upwards of 70% of the civilian
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work force is furlough. you can be rest assured that the public and industry that the first line of defebruariers in terrorism and espionage cases are still being worked. >> people who count on public safety see first of line of defense, right? you see police officers, you see on bigger occasions or where there are terror threats that have escalated you see more of them around, and that's where we get our sense of public safety from. when it comes to the intelligence community, whether it's cyber or anti-terrorism stuff, that's sort of full-time work. >> that's absolutely right. you see the first line of defenders like today with what hand on capitol hill -- >> sure if you looked at a tv screen all you saw were first responders. >> exactly. and we hope nothing will happen to that.
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but the more abstract part, behind the -- the lines of defense that are not there right in the public -- department of homeland security right now, about 14% are reported to be on furlough. some of those professionals are involved with researching and development on screening procedures. we may be able to withstand a few days, but not much beyond that. >> you and the folks at your group are all deeply connected in the intelligence and law enforcement communities. any response from those communities about moral? >> yeah, is the shortance. even colleagues that i have spoken to that are still in the act say that look, like in the mid-'90s, there is an impact, because there's that uncertainty, both of their colleagues that are furloughed when they are coming back to work, and then if this impasse goes on much longer. >> how do you square this with
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congress? people are declared essential or nonessential, it's not essential for a few days versus if it goes on for two weeks. is one of those areas that is critical. how do you suggest the government deal with this sort offish eye? >> my quick answer to that is get past this budget impasse. the funding right now is being held as we know the situation, get the funding done, take care of the other issues in session, but our security inextrickily tied to private markets and other things. but the idea of resiliency -- look we're going to get through this, and come back to work, but time is of theest fence. >> from your lip to congress's ears. thanks, robert. >> thank you. today on twitter and facebook we have been asking
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you, if you could tweet congress what would you say? greg says . . . and steve tweets . . . tell me what you think by tweeting me or leave us a comment on facebook. while government employees remains at a stand still in washington, america's oil and natural gas workers are on the job as our oil and gas business booms. a story when "real money" continues. uncovers unheard, fascinating news stories? it drives discussion across america. share your story on tv and online.
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>> obama administration officials said they need to enrol 2.7 u.s. redents between the ages of 18 and 35 in exchange plans to balance risks and hold down costs. will they enrol come 1 october - should they pay the face. >> joining me now is jen mishory, deputy director of young invincibles, she's in washington d.c. and yevgeniy feyman, a research assistant at the manhattan institute. thank you for being with us. i want to start with you yevgeniy feyman. the young people are crucial to the success of obamacare. >> absolutely. they'll balance out the risk pool, they'll keep premiums that need the insurance, and the administration is reaching out to them. >> jen, the young invincibles are in the 18-34 group.
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antonio mora brings you smart conversation that challenges the status quo with unexpected opinions and a fresh outlook. including yours. >> what do you think? >> consider this. unconventional wisdom. [ technical difficulties ] nearly 2 billion barrels a day in oil using techniques that extract both oil and gas trapped in shale formations. frac-ing works by injecting deep into the shale and fracturing it with water. it's controversial because gas exploration companies are exempt
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from certain rules that allow them to use chemicals that people say could leak into the water table. despite the controversy, america's energy boom added 1.2 million direct and indirect jobs to the economy last year. growing energy production in this country could boost average u.s. income by $2,000 a year mostly through savings on energy bills. that remains to be seen, but this production has the u.s. poised to overtake russia as the number one oil and gas producer in the world. that's according to an an sis by the "wall street journal" that was published on tuesday. frac-ing in big energy boom states has bolstered america's
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energy output. already the u.s. produces 60% of all of the oil it uses according to the department of energy, much as changed in less than a decade. in 2005 those numbers were reversed. at the same time u.s. oil imports have fallen. saudi arabia still produces more crude oil than the u.s. and russia, but americans and russians produce far more natural gas. what is new is that the u.s. actually tapped more gas than russia did in 2012, something it hasn't done since the early '80s, and while the russians still produce more oil, the gap with the americans are narrowing. now russell gold is one of the authors of the "wall street
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journal" report about america's rise to the oil and gas production thrown. he joins us from austin. thank you for being here. the fact that america is producing more oil and gas is something we know. we didn't really get a sense of the pace of it until your report came out of how much it is growing. last year's election saw both president obama and mitt romney on behalf of republicans claiming credit for this. what is the real reason behind this growth in american energy production? >> well, i really wouldn't give the government very much credit. really what happened was that about 15 years ago, the -- the conventional wisdom was the u.s. was pretty much starting to run out of gas and was going to rourun out of oil. so they modernized and super sized the old fashioned frac-ing process.
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and once they did that, it was off to the race. there is an enormous amount of oil and natural gas left in the united states that had been inaccessible ten, or 15 years ago. >> in your story you note there are a number of people who think there is a bubble that is going to burst. somebody from opec said the u.s. oil boom from shale will run out by the decade's end. where are there doubts that this is real? >> well, they did say that and one of the largest gas producers in russia has said it. their point is we're pumping so much money into and there is not enough to keep going for a long time. the u.s. consultants disagree. from what i have seen this energy boom has surprised everyone. no one thought that north dakota
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which was doing 100,000 barrels a day five years ago, and now it is 800,000 and shows no signs of slowing down. there are a couple of things that could derail it. low oil prices. if we see regulations that would prevent or slowdown hydraulic frac-ing that could have an impact as well. there was a pew poll who showed that the percentage of americans who were against frac-ing went up almost 50% in six months. so there is a lot of opposition to this right now, but when you talk to people who are in the business, who live in some of these states and locations that have 3% unemployment, they are really excited. >> all right. russell excellent article. we're going to make sure that we tweet it out, so that our
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viewers can all read it and understand this energy boom in america. russell just talked about some of the issues, the profitability versus the tensions on frac-ing, one of the most profitable areas for frac-ing is the marcellus shale form nation. that is it. now geologists say this formation is so rich in natural gas that it may contain 440 times the amount of natural gas that new york state uses in an entire year. in youngstown, ohio was once the heart of the industrial northeast, the steel capitol of the world. that all went bust in the u.s. steel industry decline. it's real lifeline may now be here in the form of natural gas. frac-ing has brought money, jobs
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and hope to youngstown, but it is also being blamed for doing damage to the environment. before frac-ing it never had an earthquake, now at least a dozen earthquakes have been reported in the last three years. and critics are also worried that frac-ing may contaminate the local water supply. rich, you have been living there a long time, and all of a sudden a dozen earthquakes, and some say there may have been a hundred in the last recent years. this doesn't trouble you? >> no, and the company that was responsible for that has been rep -- reprimanded. they put a hold on that well. that person was fined. his business was shut down and
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he is spending severe prison time in this. so it is a very safe product. we have been very much involved with it. it has changed our demographics as far as the training programs and job opportunities. four years ago we had 40% unemployment. now we are full employment, people from all over the country are coming to youngiyoungstown, as well as young people are staying here. >> i was there during the election, the week before the election and people were talking about this, that this was a place that had a real depressed feel to it. you had seen some time in between steal and ah toes, and then there was a bustle plant going on, and then the recession hit, and that, you know, almost went idol. but this is -- draw me a picture
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of how youngstown has changed balk of frac-ing? >> those steel mills are now coming back to full life. [ inaudible ] put a billion dollars back into the industry as far as building a brand new tubular mill. general motors, full strength three shifts, things are going very well. we were the fourth largest exporter from youngstown to outside of the united states as well as the sixth largest growth of economic growth in the united states. the one thing is -- it benefits everybody, not only in the frac-ing industry, but businesses, farmers, industry, all of life is recouping from what was some sad years for us. 30 years that we had where there was nothing for us, other than experting our best talented kids moving out of the area.
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now we're full swing, the school had been getting grants, it has been a very positive -- and why this was done is partnerships. we have been very much involved with both congressman tim ryan and bill johnson, both of opposite parties working close together. >> that's a new one. butch, i have to leave it there thank you for sharing with us the story of the resurgence. butch taylor is with the plumbers and pipe fitters local 396 in youngstown. there are people who do have lots of issues with the environmental impact and the earthquake stuff. but we'll talk about that. we'll stay on this topic quite a bit on this show. welcome back by the way, i know i'm supposed to say that at the other side of the break, but when we come back, i'll talk about u.s. manufacturers planning to brick jobs back to
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america. >> we believe it will have a significant impact son job growth. we believe by the year 2020 we'll see 2.5 to 5 million jobs being created because of the changes in manufacturing in the us. and that could move the unemployment rate down by 1.5 to 2 points.
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tomorrow night, fault lines investigates wage practices in
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the u.s. manufacturing industry has lost about 8 million jobs over the last 30 years. some were lost because technology means fewer labor hours needed to build things, but some jobs went overseas. we know that as offshoring, but in the last few years, companies, including ge, motorola and caterpillar have reopened factories in places like ohio, kentucky, and georgia. >> reporter: lost livelihoods, shattered communities.
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imaging of u.s. manufacturing jobs migrating overseas, but that picture is slowly changing. according to a recent survey, more than half of executives polled at large u.s. manufacturers are planning to bring production back to the u.s. from china or are actively considering it. a nearly 50% increase in the last 18 months. >> the costs in china were extremely low and have been rising. >> reporter: since '2010, more than 200 u.s. manufacturers have returned 80,000 jobs to u.s. shores, and as those jobs come home, services spring up around them. >> we believe we'll have a significant impact on job growth. we believe by the year 2020, we'll see 2.5 to 5 million jobs
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being created because of these changes. that could move the unemployment rate down by 1.5 to 2 points. >> reporter: some argue many of the jobs that have already gone to china are unlikely to return. >> the chinese now have real capabilities in manufacturing, and they are very good at getting new products to market rapidly. >> reporter: susan burger spearheaded a study in u.s. manufacturing. she says it is the ones that will be created here that will drive growth. >> company after company that we visited the people are not only making goods, but attaching valuable services to them. >> reporter: she says u.s. manufacturers need more programs to train workers and capital to ramp up production, but with foreign shores looking less appealing, images like this will
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hopefully become less common. >> more than 60% of u.s. companies reshoring are bringing jobs home from china. the regions benefiting the most are the south and the midwest. after almost 30 years of decline, the last couple of years have seen some manufacturing jobs return, but my guest scott paul says it's not a resurgence. scott joins us now from washington. before we talk about this restoring trend, we have been talking about frac-ing and natural gas, the cost of natural gas has come down and that has made electricity cheaper in the united states, and some people cite that as a reason for the resurgence. >> yes, energy costs far and
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away exceed labor costs. so if you bring that cost of energy down, you make u.s. manufacturing that much more appealing. so yes, you will see this be a distinct cost advantage for energy intensive industries and also for the biproducts of natural gas. things like plastics and crackers you will see, and they are likely to locate very close to that production. >> let's talk a bit about this reshoring trend. what is your thought on it? >> i agree in three to five maybe even ten years we'll see more results from it. over the last nine months of this year -- obviously we don't know the numbers tomorrow because of the shutdown -- but there have only been about 12,000 jobs added in
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manufacturing. now it's welcome news as you indicate compared to the 30 years prior where we lost so many jobs, but it -- i think it's true that more executives are thinking about it, and there are certainly anecdotes with may tag, ge, ford, apple, google, lots of other folks either shifting or planning to shift jobs back, but in the macro data it has not shown up yet. >> the fact is americans buy stuff that is the most cost effective for them. so what is the best way to pick up manufacturing in the united states? >> there are a couple of ways. it is true there is much more a consumer preference for made in america. beyond that, wages in asia are rising. they have leveled off in the
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united states. you have the energy cost, and the awareness among executives that it's easier to customize, and better to be closer to your customer, you can increase control over your inventory, over your quality, your are less likely to lose intellectual property to left or piracy, so there are lots of tangible and intangible benefits from locating in the u.s. >> scott we'll spend a lot more time talking about this. thank you for joining us. >> thank you. that is our show for today. friday we take a look at twitter's plan to sell a billion dollars of stock to the public, and whether you should consider buying it. i'm ali velshi. see you next time. news stories? it drives discussion across america. share your story on tv and online.
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♪ hi, i'm lisa fletcher, and you are in the -- "the stream." how is social media contributing to chicago's gun violence? ♪ the numbers are staggering, gunfire results in chicago about every five hours. this year alone more than 330 people have been killed by gun violence. >> you pull up on to any corner, and it -